#draftedsale for wholesale only car dealers

DMV Licensing Choices

All dealer license applicants must select the type of dealership they wish to create.

The choices are:

Wholesale Only

Wholesale only dealers sell from dealer to dealer, auction or dismantler, A wholesale only dealer cannot sell directly to the public. We offer drafted sale assistance for wholesale only dealers wishing to sell an inventory unit to the public.

Wholesale dealers selling 24 units per year or less require a $ 10k bond.

Wholesale dealers selling 25 units or more per year require a $ 50k bond.

Wholesale dealers do not need parking, outside or inside signs.

Zoning approval is usually simple and may allow a home based dealership if separate entrance requirements are met.

Retail

A retail license includes a wholesale license. Retail dealers are unrestricted in whom they can sell their inventory to. Retail dealerships require a commercial location with local zoning approval including assigned parking, inside and outside signs. Mixed use locations may qualify with zoning approval and separate offices. Only one dealer may occupy a USPS approved address.

All retail dealers, except motorcycles require a $ 50k bond.

AutoBroker Endorsement

Any dealer, wholesale or retail, with a $50k bond, local zoning approval and an outside sign may choose to become a licensed autobroker.

AutoBrokers may legally collect a finders fee when they bring a customer to a selling dealer. AutoBrokers must establish a trust account and have written authorization signed by the buyer to get paid. AutoBrokers may collect fees from the buyer and the selling dealer with full written disclosure. The fee is $ 125. then $75. per year

AutoBrokers are legally allowed to deliver brokered dealer inventory provided they have assigned their own dealer plate and have dealer insurance on file.